Hedge fund manager Doug Kass tweeted (via 9to5Mac) a short time ago that he is hearing rumors of an announcement regarding a stock split coming at Apple's shareholder meeting scheduled for tomorrow at the company's headquarters in Cupertino, California. The stock has reversed course since Kass's Tweet, moving from down $5 to up $5.

Many observers, such as Fortune's Philip Elmer-Dewitt, are calling into question Kass's statements, noting the sequence of events that saw him announce a large position in Apple, float the rumor of a stock split, and then announce that he was selling off shares after the stock spiked. Kass has, however, defended his Tweet, saying that the rumors were "all over the Street".

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While a stock split would not add any intrinsic value to Apple's market value, some have viewed a potential split as a positive for Apple under the perception that a company is more likely to split when it is confident that the stock price will rise in the future. Observers have also argued that high stock prices for companies like Apple and Google have kept them from being added to the Dow Jones Industrial Average given the outsized impact they would have on the price-weighted index.

Apple's last stock split came in February 2005, a 2-for-1 move that brought the price of a single share down to just under $45. Apple has refrained from splitting its stock since that time, with investors seeing the share price rise to over $700 before pulling back to the current level around $450.

Many investors only invest in units of 100. Apple's high price locks many investors out. If Apple's stock price is halved, I can see many small investors jumping in. Many less sophisticated investors who do not look at the P/E or PEG but only look at Apple's price will stop thinking it is overvalued.

Volatility should go up, as small investors are more likely to buy and sell over purchasing and holding for years.

I have found that this is a good explanation about a stock split. It's quite interesting.

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It is a useful explanation, but it does seem like stock manipulation nevertheless.

I am disturbed over what the stock market has seemed to become over the last 20 or so years. Admittedly, my knowledge is rudimentary, only having researched enough over the years to be "investment club"-level savvy. It seems like the overall increase of the market is less about the strength, fundamentals and future of corporations, but merely how they can puff up their numbers for short-term gain. It appears to operate more like a casino and less like an exchange that exists to support American corporate financial strength.

$200-$300 is more reachable for those wanting to invest and don't have a lot of money.

The last I heard Apple was a publicly traded company.

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To your first sentence, I thought that is what investment clubs and mutual funds are for, to help those without the capital to do it themselves have an opportunity to invest in higher-priced stocks that have growth potential.

Everything a company does manipulates the price of a stock. The question is, are the changes predatory or are they beneficial.

When a company announces a new product, it could be considered manipulation of stock price. It is also quite legal. When a company hires or fires members of the board of directors, it is quite often with the intent of improving stock prices.

When a company splits it's stock, it is usually because, their price is so high, many who wish to invest, can't. By splitting, they are lowering an artificial barrier to entry. This is generally a good thing.

To your first sentence, I thought that is what investment clubs and mutual funds are for, to help those without the capital to do it themselves have an opportunity to invest in higher-priced stocks that have growth potential.

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That's probably true for most people but I like to control where my money goes without using a middleman.

To your first sentence, I thought that is what investment clubs and mutual funds are for, to help those without the capital to do it themselves have an opportunity to invest in higher-priced stocks that have growth potential.

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You will never get the same return with a mutual fund that might hold a few shares of a stock compared to completely owning shares

Everything a company does manipulates the price of a stock. The question is, are the changes predatory or are they beneficial.

When a company announces a new product, it could be considered manipulation of stock price. It is also quite legal. When a company hires or fires members of the board of directors, it is quite often with the intent of improving stock prices.

When a company splits it's stock, it is usually because, their price is so high, many who wish to invest, can't. By splitting, they are lowering an artificial barrier to entry. This is generally a good thing.

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But Apples hasn't said anything about this. Right now it is just some guy telling everyone what he thinks. That's the whole point!

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